The
latest data from Lodging Econometrics reveals a double-digit rise in the number
of projects currently under construction in Canada.
INTERNATIONAL REPORT — The hotel construction
pipeline in Canada is surging with record highs in its construction pipeline,
according to the latest data from Lodging Econometrics.
Through the
first quarter, the hotel construction pipeline has a record 314 projects and
39,628 in its pipeline, both record highs. The numbers represent an 11%
increase in projects and a 5% increase in rooms, year-over-year.
“With
international arrivals continuing to improve in Canada, sentiment to grow
supply in the core markets has returned,” said Bruce Ford, senior vice president and director of
global business development at Lodging Econometrics. “Much of the new
announcements and growth in new construction projects is within the top six
Canadian provinces.”
The number
of projects currently under construction has also increased dramatically to 70
projects (up 49% YOY) and 9,151 rooms (up 58%). The number of projects
scheduled to start in the next 12 months stands at 80 projects and 9,593 rooms,
while the number of projects in the early planning stage stands at 164 projects
(up 13% YOY) and 20,884 rooms (up 1%).
Five new
hotels and 704 rooms opened during the first quarter in Canada and an
additional 26 hotels with 3,050 rooms are scheduled to open the rest of the
year, which would represent a growth rate of 1% over 2023 openings.
LE analysts
expect a continued rise in new hotel openings in Canada through 2025, with a
forecast of 39 new hotels and 3,869 rooms, which would mark a 1.1% increase in
new supply growth rate.
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Earlier in
May, we discussed why the U.S. hotel construction pipeline is surging.
In March, we
talked about the construction pipeline in Europe.
In early
January, we talked about the construction pipeline in the U.S.
In late
January, we talked about the construction pipeline in Latin America.